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UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NEW YORK
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In the Matter of
Chapter 7
CHONG N. ANDERSON, Case No. 802-86730-478
COMPLAINT
Debtor.
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KENNETH KIRSCHENBAUM, as Trustee
for the Estate of Chong N. Anderson,
Plaintiff, Adv. Pro. No.
-against-
CHONG N. ANDERSON,
Defendant.
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Plaintiff, by his attorneys, KIRSCHENBAUM & KIRSCHENBAUM, P.C., as and
for his complaint herein alleges:
THE PARTIES
1. Plaintiff is the duly appointed, qualified, and acting Chapter 7
trustee of the estate of the above-named debtor.
2. Defendant Chong N. Anderson is the debtor in the within bankruptcy
proceeding.
3. That at all times hereinafter mentioned defendant Chong N. Anderson
did, and upon information and belief, still does, reside at 1148 Waverly
Avenue, Holtsville, New York.
JURISDICTION AND VENUE
4. This Court has jurisdiction over this matter pursuant
to 28 U.S.C. Section 1334.
5. This is a core proceeding under 28 U.S.C. Section 157
(b)(2)(J).
6. Pursuant to 28 U.S.C. Section 1409, this is the proper venue for
this adversary proceeding.
7. The statutory predicates for the relief sought herein are 11 U.S.C.
Sections 727(a)(2)(A), (a)(3), and (a)(5).
GENERAL ALLEGATIONS
8. Chong N. Anderson (hereinafter the "Defendant") filed a voluntary
petition for relief pursuant to Chapter 7 of Title 11 of the United States
Code (the "Bankruptcy Code") on September 20, 2002 under case number
02-86730-478 (hereinafter "the petition").
9. This adversary proceeding arises out of and relates to the Chapter
7 case of the debtor on the docket of this court.
10. According to the Statement of Financial Affairs annexed to the
Defendant's petition, the Defendant had an interest in a business by the name
of Anderson's Martial Arts, operated at 35 W. 31st Street, New York, NY from
1999 to April 2002.
11. According to the Statement of Financial Affairs annexed to the
Defendant's petition, the Defendant received $40,000.00 gross income from the
Operation of the Business in fiscal year 2002, $55,000.00 in fiscal year
2001, and $50,000.00 in fiscal year 2000.
12. Based upon the information contained in Defendant's Statement of
Financial Affairs, Defendant averaged $10,000.00 per month in gross income
from the operation of Anderson's Martial Arts during the first four months of
2002.
13. According to the Statement of Financial Affairs, at the time the
petition was filed, no firm or individual was in possession of the
Defendant's books of account and records. Further, Defendant did not list in
the petition any explanation for why the books and records are unavailable.
14. On October 22, 2002, the first meeting of creditors was held
pursuant to Section 341 of the Bankruptcy Code.
15. Defendant did not provide any information to the trustee at the 341
meeting pertaining to the pre-petition income, expenses, and assets of
Anderson's Martial Arts.
16. During the examination, the trustee learned that Defendant had
transferred Anderson's Martial Arts to her son.
17. Defendant did not provide any information to the trustee at the 341
meeting pertaining to the pre-petition sale, transfer, or other disposition
of Anderson's Martial Arts.
18. After the 341 meeting, counsel for the trustee sent a written
request to Defendant's counsel reiterating the trustee's request for all
documentation concerning the pre-petition financial affairs, and transfer, of
the Defendant's martial arts business. 19. The Defendant did not appear at
the continued 341 meeting held for the purpose of obtaining information
pertaining to the pre-petition financial condition, and transfer, of
Anderson's Martial Arts.
20. No recorded information, including books, documents, records, and
papers, pertaining to the pre-petition financial condition of Anderson's
Martial Arts, has been turned over by the Defendant to the trustee.
21. No recorded information, including books, documents, records, and
papers, pertaining to the sale, transfer or other disposition of Anderson's
Martial Arts, has been turned over by the Defendant to the trustee.
22. The Defendant cannot adequately account for the pre-petition
financial condition of Anderson's Martial Arts.
23. The Defendant cannot adequately account for the pre-petition asset
transfer of Anderson's Martial Arts.
24. According to Schedule F annexed to Defendant's petition, Defendant
had $33,610.32 in general unsecured debt at the time her petition was filed.
25. Schedule F annexed to Defendant's petition does not list the dates
that any of the general unsecured debt was incurred.
26. Based upon the amount of debt incurred, and Defendant's failure to
list the dates the debt was incurred, it can be reasonably inferred that
Defendant transferred a pre-petition asset at the time she had outstanding
debt.
AS AND FOR A FIRST CAUSE OF ACTION FOR AN ORDER DENYING THE DEBTOR A
DISCHARGE PURSUANT TO 11 U.S.C. SECTION 727(a)(2)(A)
27. The Defendant, with intent to hinder, delay, or defraud creditors,
transferred a pre-petition asset at a time when the Defendant had incurred
debt.
28. By virtue of the foregoing, the Defendant's discharge should be
denied pursuant to 11 U.S.C. Section 727(a)(2)(A).
AS AND FOR A SECOND CAUSE OF ACTION FOR AN ORDER DENYING THE DEBTOR A
DISCHARGE PURSUANT TO 11 U.S.C. SECTION 727(a)(3)
29. The Defendant has concealed, destroyed, or failed to keep or
preserve any recorded information, including books, documents, records, and
papers, from which the pre-petition financial condition of Defendant's
business, Anderson's Martial Arts, might be ascertained.
30. By virtue of the foregoing the Defendant's discharge should be
denied pursuant to 11 U.S.C. Section 727(a)(3).
AS AND FOR A THIRD CAUSE OF ACTION FOR AN ORDER DENYING THE DEBTOR A
DISCHARGE PURSUANT TO 11 U.S.C. SECTION 727(a)(5)
31. The Defendant has failed to explain satisfactorily any loss of
assets or deficiency of assets to meet her liabilities.
32. By virtue of the foregoing, the Defendant's discharge should be
denied pursuant to 11 U.S.C. Section 727(a)(5).
RELIEF REQUESTED
WHEREFORE, Plaintiff respectfully requests the entry of an order and
judgment denying the discharge of the Defendant pursuant to 11 U.S.C.
Sections 727(a)(2)(a), (a)(3) and (a)(5), together with such other and
further relief as this Court deems just and proper including the Trustee's
counsel's fees in this proceeding.
Dated: Garden City, New York
November 12, 2002
KIRSCHENBAUM & KIRSCHENBAUM, P.C.
Attorneys for the Trustee
By:_________________________________
Steven Sheinwald, Esq (SS-6336) 200 Garden
City Plaza
Garden City, New York 11530
(516) 747-6700
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